Boomer’s Blog

HomeVestors of America, the real estate investment (REI) firm with the ad campaign featuring cave man investor Ug, who carries a club and “Buys Ugly Houses,” has announced that Franchise Brands has bought a majority interest in the company.

Almost 20 years ago, the Dallas-based HomeVestors entered the real estate investment (REI) fray with the mission to buy and sell rehab-ready homes for fast profits. It and sold its first franchise in 1996, and has bought about 35,000 homes since its launch. Last year, HomeVestors bought 6,400 homes and sold 5,000, and in 2006, the company reports that it bought about 7,100 properties.

Since its inception, the company has flourished into a national franchise that specializes in buying — and selling — “Ugly Houses.” Currently, HomeVestors boasts about 230 offices in 35 states franchises sell most of their houses to other investors and first-time home buyers.

HomeVestors’ majority interest buyer, Connecticut-based Franchise Brands, formed three years ago with strong support from the founders of Subway restaurants. who also own Utah-based Bajio Mexican Grill, and Indiana-based Mama DeLuca’s Pizza. Terms of the deal were not disclosed, the Dallas Business Journal reports, but executives say that Franchise Brands is committed to using its resources to advance HomeVestors‘ franchise expansion goals and further develop its business model.